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Message: For googles sake! Why has eDigitals shareprice shot up 60% in just 2 days?

For googles sake! Why has eDigitals shareprice shot up 60% in just 2 days?

posted on Feb 07, 2009 01:03AM

I've been following along on the periphery so most of my comments have probably already been mentioned. Great to see the pacer filings and important to note that the investment community beyond those following on Agora have no idea what is about to transpire in the next several months. The filings are early notice of the settlements that are likely to be formally announced in a mutually agreed unon press release. If the past is any indication, Olympus, Sanyo and Avid will all chose to not disclose terms of the settlement and may elect to not release their names as part of the PR. This makes the 4th settlement this quarter if you include Nikon. The financial results of these settlements will likely be significant although specific terms of each settlement should be undeciferable as they will all be reported in the same quarterly report the end of June and comingled together in one lump line item. The succession of filings seems to be the result of joint settlement negotiations.

I believe this approach was agreed to in early December by all remaining parties. (including Samsung) It could be that Samsung represents a more complex negotiation as they were once said to be partnered with eDigital. (Dataplay playing a role and if I may conjecture exposure to eDigitals technology) Their infringement may well be more overt and intentional than the others and therefore more egregious. We'll see how long that takes to play out.

The fact that the shareprice has increased by 60% for no apparent reason to the outside investment community should actually bring notice to eDigital if for no other reason than percentage change. With most of the investment prospects in the tank because of the economy, eDigital should represent a distinct opportunity. A cash infusion as a result of these negotiations should permit them to advance their busness plan partnering with already developed relationships. (perhaps Samsung? Don't know)

There is allot to speculate on as a result of the past few days and for the most part it's all positive. If we can just get a positive summary judgement out of Utah, then in my opinion, it's all very positive. By the time the 10k is released. many of these things we might speculate on should be a matter of record. This should be an interesting and very exciting few months.

Larry

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